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Alan Sugar: Street Smart

While not quite the classic ‘rags to riches’ story, Alan Sugar is a genuine example of the trope of a smart, hard working street trader, who makes it to the big time. And what a big time it is. The Sunday Times Rich List rates him as a Sterling billionaire. It’s easy to feel we know Alan Sugar, through his successful appearances on the UK version of The Apprentice. I suspect that what we see on screen, however, is a character: part Alan Sugar, and part the creation of the shows directors, producers and editors.

Alan Sugar

Short Biography

Alan Michael Sugar was born in 1947 and grew up in Hackney, in East London. His father worked in the East End garment industry, as did my grandmother. After leaving school at 16, Sugar spent a short time in the Civil Service, before investing £50 of his savings in a van and some electrical goods to sell from it.

Sugar was an adept street trader and gradually moved up the value chain to wholesaling and import, founding his first company, Amstrad (AMS Trading), in 1968. But Sugar realised he would only find the big profit in manufacturing. The business he understood best was consumer electronics, so Amstrad’s first manufacturing venture was record turntables. This was the first of many examples of Sugar finding ways to reduce manufacturing costs substantially, so he could out-compete rivals on price.

The 1980s were great years for Sugar and Amstrad, starting in 1980 with its flotation on the London Stock Exchange. The company grew rapidly and launched its first computer in 1984. Although outcompeted by Apple, Commodore and the BBC Micro, it did sell well domestically, as did the following year’s business-oriented word processor. The 1980s ended with the launch of Amstrad’s first satellite TV receiver dish – a line that was to be extremely profitable, with the growth of satellite broadcasting by Sky, BSB, and later, the merged BSkyB. The 1990s were more troubling for Amstrad, which suffered a number of commercial setbacks.

I cannot help wondering if Sugar ‘took his eye off the ball’ in the 1990s, because this was the time too, that he bought and chaired the Premier League football Club Tottenham Hotspur (1991-2001). He later described this period as a waste of his life, and it was certainly a fractious time at the club.

In 2007, Sugar cleared house, selling off Amstrad to business partners BSkyB and his final stake in Tottenham Hotspur.

In 2000, Sugar was knighted “for services to the Home Computer and Electronics Industry” and became Sir Alan Sugar, and then in 2009, was enobled as Baron Sugar of Clapton, to take up a place in Gordon Brown’s Labour Government, sitting in the House of Lords. In 2015, Sugar resigned the Labour Whip, saying that the party’s policies had drifted too far in a direction away from the needs of British business.

Amstrad is also a serious philanthropist, donating substantial funds and time to care and arts organisations. He has written four books too, of which the most important and best selling is his autobiography, What You See Is What You Get. And, of course, he is best known in the UK for his appearance in every series of BBC TV’s The Apprentice.

Business Lessons from Lord Sugar

Much has been written on this – including by me, in a series of blogs drawing lessons from episodes of The Apprentice over a number of years. So let’s keep it simple. Here are five important lessons for managers and business people to bear in mind.

Lesson 1: Character is Destiny

Whether you like or loathe the image he portrays in public, Sugar cleaves firmly to his own principles and business values. If I had to assess ‘the real Alan Sugar’ – and bear in mind, I have no privileged knowledge here – I would speculate that he is someone who has deep respect for people who can demonstrate their capabilities and expertise at the highest level, and has no time for people who have little ability. Anyone who tries to make up for their shortcomings through ingratiation or deception will incur his wrath.

I suspect trusting his closest allies and advisors profoundly has been important in building his success, but his blunt, no nonsense, and occasionally abrasive style has created detractors. His management style has been criticised, as has his attitude to women at work.

Lesson 2: Spot the Next Big Thing… then move quickly

Computers, word processors, TV satellite dishes, email, PDAs, satellite TV receivers… Sugar was in on the ground floor of all of these. At each stage, he used the knowledge and skills gained in earlier ventures to move quickly and seize market share. He also has a strong insight into customer desires and behaviours, which is critical in commercial decision-making. Not all his ventures have been hugely successful, but in business, it is the cumulative success that matters. Indeed, not all his customer predictions have been sound either: he famously predicted the demise of the iPod within a year. Whoops.

Lesson 3: Out-compete ruthlessly

Sugar’s primary competitive strategy is to out-compete on price. Take early stage technology that has started to stabilise, and find a way to manufacture and ship it at vastly reduced costs. The Amstrad computer was reportedly designed on an airline napkin, on a flight from Japan (where he’d seen early computers on sale) and Hong Kong, where he had business contacts that could help with manufacturing.

Lesson 4: Roll with the Punches

Sugar is a great example of business resilience. Not every venture was a success and he has had difficult times in his commercial life. Maybe a stable family life (40+ years of marriage) helped, but I suspect his personal resilience is also down to his character. Expect set backs, take them on the chin, learn from them, and come back fighting.

Lesson 5: Learn how to Negotiate well

I don’t know what Lord Sugar’s negotiating secrets would be – or even if they are anything more than consistent and ruthless application of sound basic principles. But it is certain that he is able to secure every last ounce out of a deal and is scathing of people who ‘leave money on the table’ in a negotiation.

For more on Negotiation, see:

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New Job

Maybe you are newly on the job market… a recent graduate without a job, a school leaver at the end of the summer, ready for work, recently redundant, or bored with your job and looking for a new one.  Or maybe you have been looking for a job for a fair time and are hoping for a new tip that could make the difference.

The Perfect CV

The perfect CV or job application does not exist.  The best one for this opportunity, at this time, with your skills, experience and personality is what you need to create.  Yes; you read that correctly – each CV and each application needs to be tailored to the role you are applying for and the culture of the organisation you are applying to.  This is not to manipulate the truth, but to make the relevant truth easy for selectors to find and appreciate.

What General Principles Apply?

There are some general principles, and these are important.  They will dictate in part the base document you create and in part how you adapt it each time.

Character First

There is an old saying: ‘hire for attitude: train for skills’ and many organisations apply that ethos.  What is becoming more evident is the desire to place character before capability.  Where there is an over-supply of skilled or experienced candidates, what really matters is character.  How can you use your application documents to demonstrate your character strengths?

As an aside, what can you do while you wait for that job, to develop your character?  Working at this is, itself, a sign of character and an important asset in your job search.

Stand-alone CV?

Your application documents no longer stand alone.  If an employer is interested in you, the HR department or interviewing manager may well punch your name into a search engine.  There is a debate in the HR profession around the ethics and the reliability of this, but the safest thing is to assume it will happen.  So do it yourself and find out what they would see on their screens.  If it is not good, fix it.

Pay particular attention to social media and use professional social media websites like Linked In to your advantage.

CV

Marketing

Printing your CV on Day-Glo paper may be good for attracting attention but will not attract an interview.  However, a well-laid out, carefully prepared and proof-read document with a little design consideration may help.  Look at the corporate style of the organisation you are applying to: download their brochures and reports from their website.  Are they traditional or modern in their design ethic?  Do they like dense information or a lot of white space?  Don’t copy their style, but do reflect it.  A small number of excellent applications will beat a vast number of low quality all-the-same ones – and save you on postage.

The Core Message

What is your SHA?  Your Specific Hiring Advantage – for this job, for this employer.  Build your CV and application around that one message.  Keep the content concise and relevant and address any criteria or clues you get from the job details, the advert, the organisation’s public image.  Two good pages are perfect.  Any more and it won’t get read.

A Really Good Cover Letter

… will grab attention on line one and leave the reviewer eager to read your CV and subconsciously biased in its favour.  The confirmation bias means if they like your cover letter, they will look for the good in your application and CV.  If the cover letter fails to impress (or worse) then they will notice every tiny flaw in your application and it will be scrapped (emotionally if not physically) long before the bottom of the last page.  Hone your cover letter to perfection – don’t treat it as a last minute rush job.  That would waste all of the other efforts you have made.

Be Honest

‘Character first’ was the first tip – and it is the last.  If they have the slightest reason to doubt your honesty, you are burnt burger and in the bin.  Avoid exaggeration and provide evidence.

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